South African telecommunications
companies Vodacom Group Ltd. (VOD) and Telkom SA SOC Ltd. (TKG) fell after
the government initiated a plan to sell listed assets to help
rescue state-utility Eskom Holdings SOC Ltd.

Vodacom, the wireless operator with the most subscribers in
South Africa, erased gains to be down 0.2 percent at 127.65 rand
as of 2:08 p.m. in Johannesburg. Telkom, Africa’s largest land-line operator, was up 2.7 percent after being 5.8 percent higher
earlier in the day.

South Africa will raise at least 20 billion rand ($1.8
billion) by selling shares in listed companies, stakes in state-owned entities and real estate to finance a bailout for power
utility Eskom, Finance Minister Nhlanhla Nene said in the mid-term budget in Cape Town today.

The government is exploring a sale of its 26.7 billion-rand
stake in Vodacom as it seeks funds for Eskom, four people with
knowledge of the matter told Bloomberg last week. The government
has approached financial advisers about the possible disposal of
its 13.9 percent stake in Vodacom, said the people.

To contact the reporter on this story:
Christopher Spillane in Johannesburg at
cspillane3@bloomberg.net

To contact the editors responsible for this story:
Kenneth Wong at
kwong11@bloomberg.net
John Bowker, Alastair Reed